Correlation Between Science Applications and VNET Group
Can any of the company-specific risk be diversified away by investing in both Science Applications and VNET Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Science Applications and VNET Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Science Applications International and VNET Group DRC, you can compare the effects of market volatilities on Science Applications and VNET Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Science Applications with a short position of VNET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Science Applications and VNET Group.
Diversification Opportunities for Science Applications and VNET Group
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Science and VNET is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Science Applications Internati and VNET Group DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VNET Group DRC and Science Applications is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Science Applications International are associated (or correlated) with VNET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VNET Group DRC has no effect on the direction of Science Applications i.e., Science Applications and VNET Group go up and down completely randomly.
Pair Corralation between Science Applications and VNET Group
Given the investment horizon of 90 days Science Applications is expected to generate 2.23 times less return on investment than VNET Group. But when comparing it to its historical volatility, Science Applications International is 1.27 times less risky than VNET Group. It trades about 0.05 of its potential returns per unit of risk. VNET Group DRC is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 897.00 in VNET Group DRC on December 1, 2025 and sell it today you would earn a total of 181.00 from holding VNET Group DRC or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Science Applications Internati vs. VNET Group DRC
Performance |
| Timeline |
| Science Applications |
| VNET Group DRC |
Science Applications and VNET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Science Applications and VNET Group
The main advantage of trading using opposite Science Applications and VNET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Science Applications position performs unexpectedly, VNET Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in VNET Group will offset losses from the drop in VNET Group's long position.| Science Applications vs. Cisco Systems | Science Applications vs. SAP SE ADR | Science Applications vs. Salesforce | Science Applications vs. Micron Technology |
| VNET Group vs. Paymentus Holdings | VNET Group vs. NIQ Global Intelligence | VNET Group vs. Science Applications International | VNET Group vs. Paysafe |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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